The 30-share barometer fell by 30.86 points, or 0.15 per cent, to 20,072.49 with stocks of oil and gas, consumer durable and realty trading in the negative.

The wide-based National Stock Exchange index Nifty declined by 7 points, or 0.12 per cent, to 6,067.80.

Brokers said restricted commitments by participants ahead of the Reserve Bank of India's monetary policy review, to be announced later today, and a weak Asian trend mainly influenced the trading sentiments.

In the Asian region, Japan's Nikkei Index fell by 0.68 per cent, while Hong Kong's Hang Seng index declined by 0.07 per cent in early trade. The US Dow Jones Industrial Average ended 0.10 per cent lower yesterday.

India's central bank said a sustained commitment to contain the fiscal and current account deficits was needed to create room for monetary easing.

Axis Bank Ltd is selling shares to raise as much as $1 billion, two sources with direct knowledge of the matter said on Monday.

The government is likely to make it easier for foreigners to prove their residency for claiming benefits under bilateral tax treaties, said a finance ministry official who did not wish to be named.

ENERGY/COMMODITIES

The finance ministry has asked the petroleum ministry to price motor and kitchen fuels at export parity, in a policy shift that would bring relief to fuel consumers and the economy but shake up the domestic oil retail market.